Did that order actually make money?

Order delivered. Invoice sent. Customer happy. But did it make any money? At many manufacturers you only know once the bookkeeper is done. Weeks later. By then the next order has long been accepted, at the same price.

A calculation example of what is lost on the way. With 650 invoices a month and 2 minutes of retyping per invoice, that is 260 hours a year. Add approving invoices and tracing duplicate invoices, and you quickly reach 320 hours. About €13,000 of administration, and nobody has learned anything about margin yet.

The bigger amount is the number you do not know: the orders that make nothing, and how long it takes before you see it. When postings come automatically from purchasing, production and sales, you see the margin while you can still do something about it. That is what we do in Digital WorkMate with Finance.

Indicative calculation example, €40 per hour. Not a customer result.

How many of your orders make nothing, and how long does it take before you know? Want to see how this works? Book a demo.